Summary:
- Synopsys (SNPS, Financial) anticipates a 13.3% EPS growth and a 9.6% revenue increase for its upcoming second-quarter earnings.
- Analysts have placed Synopsys at an "Outperform" rating with significant upside potential in stock price.
- GuruFocus estimates a 21.5% increase in GF Value for SNPS over the next year.
As anticipation builds for Synopsys Inc. (SNPS) to unveil its second-quarter earnings results on May 28th, investors are keen to see if the company will continue its remarkable trend of exceeding market expectations. Analysts project earnings per share (EPS) to climb to $3.40, representing an impressive 13.3% growth compared to the same quarter last year. Revenue is also expected to rise to $1.6 billion, marking a 9.6% increase. Synopsys has established a strong track record, having surpassed EPS and revenue estimates 88% of the time over the last two years, bolstering investor confidence.
Wall Street Analysts' Forecast
According to the price targets set by 20 analysts over a one-year horizon, Synopsys Inc. (SNPS, Financial) holds an average target price of $597.23. This includes a high estimate soaring to $707.78 and a conservative low of $502.41. The average price target suggests a potential upside of 16.69% from the current trading price of $511.79. Investors looking for more detailed estimate data can explore the Synopsys Inc (SNPS) Forecast page.
Furthermore, with consensus recommendations from 21 brokerage firms, Synopsys currently enjoys an average brokerage recommendation of 1.9, corresponding to an "Outperform" status. This rating falls on a scale of 1 to 5, where 1 indicates "Strong Buy" and 5 signifies "Sell."
GuruFocus Analysis on Fair Value
Drawing from GuruFocus estimates, the projected GF Value for Synopsys Inc. one year from now is $621.85. This projection implies a notable 21.5% upside from the current price of $511.79. The GF Value is a vital metric for investors, reflecting the fair trading value of a stock and is derived from historical trading multiples, previous business growth, and future performance estimates. For a deeper dive into Synopsys' financial outlook, visit the Synopsys Inc (SNPS, Financial) Summary page.
